Prelims 2014 · Economy · Question 7
The sales tax you pay while purchasing a toothpaste is a
Answer
tax imposed and collected by the State Government
- (a) Incorrect. Sales tax/VAT on intra-State sale of goods like toothpaste was not imposed by the Central Government.
- (b) Incorrect. This describes taxes like some Union levies collected by States, but ordinary sales tax on local sale of goods was not a Central tax.
- (c) Incorrect. This reverses the position; sales tax was not imposed by States and collected by the Centre.
- (d) Correct. Sales tax on purchase of goods within a State was imposed and collected by the State Government under the State List (before GST subsumed such taxes in most cases).